The Determinants of Customer Satisfaction and the Mediating Role of Brand Image in the Indonesian Fast-Food Industry in Surabaya

Jeffry Pangestu, Christina Rahardja () and Dudi Anandya
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Jeffry Pangestu: University of Surabaya
Christina Rahardja: University of Surabaya
Dudi Anandya: University of Surabaya

A chapter in Proceedings of the 20th International Symposium on Management (INSYMA 2023), 2024, pp 285-293 from Springer

Abstract: Abstract This study aims to shed light on the effects of determinants of customer satisfaction on customer loyalty with a particular focus on the mediating role of brand image in the context of the Indonesian fast-food industry. Based on the literature review of prior studies, the determinants of customer satisfaction in this study are service quality, food quality, physical environment, location, and perceived price. The data of this study were collected through an online questionnaire completed by 200 participants in Surabaya. Data analysis was performed using Partial Least Squares Structural Equation Model (PLS-SEM) through SPSS version 26 and SmartPLS 3. The results show that service quality, food quality, location, and perceived price significantly influence customer satisfaction, improving customer loyalty. On the contrary, the physical environment does not have a significant impact on customer satisfaction. Furthermore, the results also show that brand image functions as a mediator between customer satisfaction and loyalty. The findings from this study can provide implications for strategic planners in the fast-food industry to formulate and develop effective strategies to gain a competitive edge over their competitors by emphasizing these critical determinants of customer satisfaction that can influence customer loyalty most significantly. Thus, fast-food restaurants can make efficient changes to compete and add value to their offerings.

Keywords: Customer Satisfaction; Customer Loyalty; Brand Image (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-244-6_44

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DOI: 10.2991/978-94-6463-244-6_44

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